Overview
With a greater-than-ever §179 deduction boosted by additional first-year depreciation and pandemic-related business-friendly provisions, these are unprecedented times for businesses to make major asset investments.
From the most up-to-date depreciation regulations to inflation adjustments and technical corrections, this course provides guidance for navigating the complex maze of rules dealing with depreciation, amortization, and sales of property. The manual contains a wide range of case types and examples covering common and uncommon situations to illustrate the most important points for CPAs to understand.
Major Topics:
- Final regulations – bonus depreciation and §1031 exchanges
- Technical correction in Rev. Proc. 2019-13 – use it or stand to lose second-year depreciation deductions for luxury automobiles
- Components for real estate depreciation
- Depreciation alternatives
- Rules for §179 depreciation
- Sales of property and the depreciation recapture rules (§1245, §1250, unrecaptured §1250 gain for real estate, §291 for corporations)
- Amortization of research and experimentation costs
- Depreciating like-kind exchange property
- Applying §121 and §1031 to the same transfer of property
- Reacquired installment sale property – calculating potential gain and new basis
- Understanding §197 amortization issues and handling intangible asset costs
- Depreciation issues, tax-deferred exchanges, conversions of personal property into business property, and home sale exclusions
- Compliance and planning issues
- Cases and rulings of depreciation and amortization issues and how they impact clients, plus useful planning opportunities
Learning Objectives
- Understand the assets subject to depreciation
- Answer advanced §179 and automobile depreciation questions
- Comprehend depreciation and MACRS cost recovery
- Navigate installment sales and reacquisitions
- Complete cases related to depreciation and sales of assets
Designed for:
CPAs in industry and public accounting who need a thorough grasp of this important area of tax law and want to maximize possible tax savings for their clients
Prerequisite:
Basic knowledge of tax issues for property transactions
Advanced Preparation:
None